Bank of Ghana defends expenditure on gold watches for retiring staff

The Bank of Ghana (BoG) has denied claims it engaged in frivolous spending following reports that it blew US$504,000 on gold watches explaining that the expenditure is part of its policy.

The BoG in a statement also assured that no procurement rules were breached in presenting sole sourcing justification to the Public Procurement Authority (PPA) for approval.

Some documents sighted in some media reports indicated that on July 22, 2016, the central bank sent a request to the Public Procurement Authority (PPA) to sole source the procurement of gold watches from a Swiss watch company.

The request letter indicated that the BoG intended to use part of its 2016 budgetary allocation to fund the procurement of 24 units of 18 carat ladies gold watches and 48 units of gents gold watches; all Tissot Gold Watches from a dealer.

It explained that the procurement of the watches begun in 2012 when the Bank decided to procure the gold watches once every two years (i.e. 2012/13 etc.) in order to control cost and make savings on foreign exchange.

The watches are meant for deserving members of staff who have served a minimum of 30 years and are due for statutory retirement from the Bank, the statement also explained.

The BoG further assured that the “PPA is an independent public institution whose work cannot be influenced by the Bank or any other institution” and that “at all times, the Bank abides by good governance principles that ensure a robust and effective internal control systems and processes.”

The BoG has issued a statement on the procurement and we present it in full below:

RE: ‘BoG GOVERNOR BLOWS US$504,000 ON GOLD WATCHES’

Reports casting slur on the implementation of the end of service benefits of some deserving members of staff of the Bank have come with grave concerns.

The Bank of Ghana wishes to state, among others, that:

1. End of service benefits, as part of the conditions of service for staff, is a longstanding tradition of the Bank, an obligation the Bank has always fulfilled to boost staff morale and commitment to the goals and ideals of the institution. The award scheme has been the convention of the Bank since the 1970s.

2. In the year 2012, the Bank decided to procure the gold watches once every two years
(i.e. 2012/13 etc.) in order to control cost and make savings on foreign exchange.

3. Deserving members of staff should have served a minimum of 30 years and are due for statutory retirement from the Bank.

4. The procurement process for the period 2016/2017 commenced in January 2016, before the appointment of the current Governor.

5. No procurement rules were breached in presenting sole sourcing justification to the
Public Procurement Authority (PPA) for approval.

6. PPA is an independent public institution whose work cannot be influenced by the Bank or any other institution.

7. At all times, the Bank abides by good governance principles that ensure a robust and effective internal control systems and processes.